Intellipharmaceutics Regains Compliance with Nasdaq Minimum Shareholders' Equity Listing Requirements
TORONTO, ON / ACCESSWIRE / October 26, 2018 / Intellipharmaceutics International Inc. (NASDAQ and TSX: IPCI) ("Intellipharmaceutics" or the "Company"), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, today announced that it has received a letter from the Hearings Advisor from the Nasdaq Office of General Counsel notifying the Company that it had regained compliance with Nasdaq's stockholders' equity requirement. The letter also informed the Company that the Company will remain subject to a "Panel Monitor" under Nasdaq Listing Rule 5815(d)(4)(A) until October 22, 2019. The letter noted that while the Company is not out of compliance with Nasdaq's minimum bid price rule because its common shares have not traded below $1.00 for 30 consecutive trading days, the Company's shares have closed below $1.00 since October 11, 2018, and indicated that if at any time during the monitor period the Company fails any Nasdaq listing standard, the Nasdaq Staff will issue a Staff Delisting Determination and the Hearings Department will schedule a hearing.
As background, at a hearing held on May 17, 2018, the Company presented its plan to regain and maintain compliance with Nasdaq's continued listing requirements. The Panel then granted the Company's request for continued listing, provided that by September 28, 2018, the Company (i) comply with Nasdaq's $1.00 bid price requirement by having a closing bid price of over $1.00 for ten prior consecutive trading days, (ii) have a stockholders' equity position of over $2.5 million and (iii) provide the Panel with updated financial projections demonstrating its ability to maintain compliance with the stockholders' equity rule for the coming year. On September 12, 2018, the Company filed articles of amendment to effectuate a 1-for-10 reverse split, and the Company's common shares began trading on each of Nasdaq and the Toronto Stock Exchange on a post-reverse split basis on September 14, 2018. As a result of the closing bid price of the Company's common shares exceeding $1.00 for the period from September 14 to 27, 2018, the Company regained compliance with the minimum bid price requirement. On September 29, 2018, the Company was advised that its request that the Panel grant a further extension through October 17, 2018 had been granted.
There is no assurance that the Company will be able to maintain compliance with the Nasdaq continued listing standards, including Nasdaq's minimum stockholders' equity, minimum bid-price or other requirements during the Monitoring Period or thereafter.